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Pradhan Mantri Jan Dhan Yojana

Topics Covered: Inclusive growth and issues arising from it.

Pradhan Mantri Jan Dhan Yojana:

Why in News?

Completes six years of successful implementation.

  • The number of total PMJDY accounts stand at 40.35 crore.
  • Rural PMJDY accounts stand at 63.6 percent.
  • Women PMJDY accounts stand at 55.2 percent.

About PMJDY:

Announced on 15th August 2014, PMJDY is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.


  • To ensure access of financial products & services at an affordable cost.
  • Use of technology to lower cost & widen reach.

Basic tenets of the scheme:

  1. Banking the unbanked – Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges.
  2. Securing the unsecured – Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakhs.
  3. Funding the unfunded – Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit.

The scheme is Based upon the following 6 pillars:

  1. Universal access to banking services – Branch and Banking Correspondents.
  2. Basic savings bank accounts with overdraft facility (OD) of Rs. 10,000/- to every household.
  3. Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking.
  4. Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults.
  5. Insurance – Accident cover up to Rs. 1,00,000 and life cover of 30,000 on account opened between 15 Aug 2014 to 31 January 2015.
  6. Pension scheme for Unorganized sector.

Extension of PMJDY with New features:

  1. Focus shift from Every Household to Every Unbanked Adult.
  2. RuPay Card Insurance – Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakhs for PMJDY accounts opened after 28.8.2018.
  3. Enhancement in overdraft facilities – OD limit doubled from Rs 5,000 to Rs 10,000; OD upto Rs 2,000 (without conditions). Increase in upper age limit for OD from 60 to 65 years.



Prelims Link:

1. When was Jan Dhan Scheme launched?

2. Eligibility 

3. Overdraft facility under the scheme.

4. Accidental insurance cover under the scheme.

5. Various components of the scheme.

Mains Link:

Discuss the significance of Pradhan Mantri Jan Dhan Yojana.

Sources: pib.